New mortgage multiples for FTB- market implications

It'll be partially offset by interest rate rises as they continue to come into play.

But in general it's adding more credit to a system characterised by high demand and critically low supply so it will only serve to inflate prices.

The only more inopportune time to make the change would have been during the previous 2 years where mania in the market caused bidding wars that were only constrained by access to credit. Makhlouf washed his hands of it by saying that it's not the CBIs responsibility, and rather subtly pointed a finger at the government's failings over the last years. Which is fair enough, and true. But it would have been more prudent to wait a period to implement these changes, and rather see how interest rate rises affected lending first.

My prediction is we'll see a great many people waiting til the rules come into effect, and then that short term pent up demand will result in a huge number of bidding wars quickly driving house price inflation. Of course, this inflation will not just be seen in lower priced homes as movers will suddenly have an extra 10-15% in equity in the house they're selling and will put that towards their own bidding war on their next home.

We now find ourselves in a situation in which we're relying on banks to curtail house price inflation via their other lending rules. Let's see how that plays out.

I am hopping to go sale agreed on property I'm buying this year, I think prices will increase by 10-15%, and especially on houses in 300 - 400k segment.

It will all hinge on how quickly banks raise interest rates and up to how much. I can also see an environment of higher interest rates persisting into the future. The question is, will the ECB follow the Fed BOE etc and raise them up to 4/5%? We're trailing those economies by a good few months as the ECB left it longer to begin to raise rates. But if all things remain equal we could be seeing the same thing happen in the EU, just offset by that number of months. So maybe what's happening in those economies is an indicator of what will happen here.

In the end we could potentially be looking at interest rates around 6%+ for borrowers. You can do the maths, but basically that would massively eat into the amount of money they will be able to borrow.

So this type of stuff will temper the effect of 4x income as ability to repay will be a greater determiner of how much a bank will loan.

Either way, early next year is likely to be a car crash in terms of price inflation, unless banks start to pass on the rate rises in a more meaningful way. We have a few months left before that, and a few more ECB rate rises to go, so it's impossible to call at this point.

It's probable that this 4x move will serve to keep prices higher than they would have been in the short term, but I still reckon that prices will begin to fall if/when interest rate rises come properly into effect.

But who knows, the property market is one wild card after another.

It makes no sense to me, it will just increase house prices when the no of houses for sale is very limited and demand is high.did the central bank not learn anything from the boom, house price crash in 2008.I can think of no logical reason to do this.

someone wise said those who do not learn from history are doomed to repeat it . We have seen before young people will borrow as much as they can in order to buy a house .the role of the central bank is to put in place sensible rules and limits on lending especially in the area of mortgages for first time buyers

the government are looking at all options re housing for refugees from ukraine ,modular housing,using old government buildings, but there needs to be also action to increase the no of housing units built all over the country for the public and the health of the economy